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One Purpose of Sending a Standard Confirmation Request to Financial

Question 49

Multiple Choice

One purpose of sending a standard confirmation request to financial institutions with which the entity has done business during the year is to:


A) detect kiting activities that may otherwise not be discovered.
B) corroborate information regarding deposit and loan balances.
C) provide the data necessary to prepare a proof of cash.
D) request information about contingent liabilities and secured transactions.

Correct Answer:

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